-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MpiK95wj4nHR/LOwjNlLTQnCMRbugITyNquMYzLMCre/PkEdwTiEIW0dDMVmVwrP H+zmOpc/pDnkKQuQEzrayQ== 0000898430-02-004118.txt : 20021113 0000898430-02-004118.hdr.sgml : 20021113 20021113173226 ACCESSION NUMBER: 0000898430-02-004118 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021104 FILED AS OF DATE: 20021113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ACTIVCARD SA CENTRAL INDEX KEY: 0001107721 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-30612 FILM NUMBER: 02821084 BUSINESS ADDRESS: STREET 1: 24-28 AVENUE DU GENERAL DE GAULLE STREET 2: (33-1) 42-04-8400 CITY: 92156 SURESNES CEDEX STATE: I0 ZIP: 29156 MAIL ADDRESS: STREET 1: C/O ACTIVCARD SA STREET 2: 6531 DUBRARTON CIRCLE CITY: FREEMONT STATE: CA ZIP: 94555 6-K 1 d6k.htm REPORT OF FOREIGN PRIVATE ISSUER Report of Foreign Private Issuer
 
Securities and Exchange Commission
Washington, D.C. 20549
 
 
Form 6-K
 
Report of Foreign Private Issuer
 
Pursuant to Rule 13a-6 or 15d-16 of
the Securities Exchange Act of 1934
 
For the month of November 2002
 
 
ActivCard S.A.
(exact name of registrant as specified in its charter)
 
 
6623 Dumbarton Circle
Fremont, California 94555
(Address of Principal Executive Offices)
 
 
Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F:
 
Form 20-F  x    Form 40-F  ¨
 
Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
 
Yes  ¨    No  x
 

 
Forward-looking Statements
 
This Report of Foreign Private Issuer Pursuant to Rule 13a-6 or 15d-16 of the Securities Exchange Act of 1934 contains disclosures that are “Forward-looking Statements.” Forward-looking statements involve risks and uncertainties and several factors could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements relate to anticipated revenues, gross margins, earnings, and growth of the market for our products. The following factors, among others, could cause actual results to differ from those indicated in the forward-looking statements: our ability to achieve profitability, uncertainties associated with market acceptance of and demand for our products, impact of competitive products and pricing, dependence on third party suppliers, uncertainties associated with the development of technology, dependence on intellectual property rights, and our ability to integrate acquired businesses, products or technologies. Investors are directed to the most recent ActivCard S.A. annual report on Form 20-F, available from the company without charge, for a more complete description of our business and to ActivCard S.A.’s Prospectus dated March 16, 2000 included in the Company’s Registration Statement on Form F-1 (No. 333-11540) filed with the Securities and Exchange Commission for other factors that could cause actual results to differ materially from those in the forward-looking statements.
 
We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented herein.
 
 
This Form 6-K includes the press release “ActivCard Reports Record Third Quarter Revenues,” dated November 4, 2002.
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Date: November 13, 2002
 
ActivCard, S.A.
     
By:
  
/s/    BLAIR GEDDES
   
Name:
  
Blair Geddes
Title:
  
Chief Financial Officer
 

2

 
ACTIVCARD REPORTS RECORD THIRD QUARTER REVENUES
 
 
·
 
Wins In Government and Enterprise Sectors Drive Sequential Revenues 25% Higher
 
·
 
Drive Towards Profitability Ahead of Expectation with Substantial Reduction in Net Loss and Cash Burn Rate
 
FREMONT, CA – November 4, 2002 – ActivCard® (NASDAQ: ACTI/NASDAQ EUROPE: ACTI), the leader in IDentity Management (IDM) software, today reported financial results for the third quarter ended September 30, 2002.
 
In the third quarter of fiscal 2002, ActivCard reported its third sequential quarterly revenue increase, achieving record revenues of $12.0 million, an increase of 25% over the $9.6 million reported in the second quarter of 2002. Third quarter 2002 revenues were also 36% higher than third quarter revenues in the comparable quarter a year ago.
 
Pro forma net loss for the quarter was $1.2 million, or $0.03 per diluted share, compared to pro forma net loss of $3.0 million or $0.07 per diluted share in the second quarter of 2002 and $2.5 million, or $0.06 per diluted share, in the third quarter of 2001. Pro forma net loss for the quarter excludes acquisition-related charges, re-incorporation costs, deferred stock compensation, restructuring charges, foreign exchange gains and losses, and the loss from discontinued operations. Actual GAAP net loss for the quarter was $2.9 million, or $0.07 per diluted share, compared to a net loss of $4.7 million, or $0.11 per diluted share, in the second quarter of 2002 and $3.8 million or $0.10 per diluted share in the third quarter of 2001.
 
“We are very pleased with the record revenues we achieved in the third quarter and our continued focus on expense controls has improved the bottom line,” commented ActivCard Chief Executive Officer Steven Humphreys. “We are well on our way to achieving our previously stated objectives of 30-35% year-over-year revenue growth and cash flow breakeven from continuing operations in the fourth quarter.
 
Third Quarter 2002 Highlights
 
Highlights of the third quarter of 2002 included:
 
·
 
Announced Microsoft® Corporation as a customer for ActivCard Identity Management Software™ (AIMS) and digital ID badge solutions. Microsoft has issued 25,000 corporate ID badges to its employees to date. The companies also are planning joint marketing of security solutions built around ActivCard software and Microsoft’s Active Directory™ and the Windows® .NET architecture.

3

 
·
 
Won significant new business with a new U.S. Department of Defense (DoD) agency customer and expanded deployments with six other existing agency customers within the U.S. DoD.
 
·
 
Chosen by Northrop Grumman to fulfill its digital identity software procurement needs through NASA’s Scientific and Engineering Workstation Procurement III (SEWP) contract.
 
·
 
Announced our new Corporate Access Card™ (CAC) solution, a modular suite of software and hardware products for enterprise identity badge deployments, using proven technology initially developed for the U.S. DoD.
 
·
 
Won a major Japanese automobile manufacturer customer and deployed 26,000 Corporate Access Cards to its employees with another 20,000 planned in the near future.
 
·
 
Won additional business with Hewlett-Packard as HP expanded its deployment of our Corporate Access Card (CAC) solution placing new orders for ActivCard IDM products and services.
 
·
 
Commended by the U.S. Defense Manpower Data Center as it issued their one millionth Common Access Card using the ActivCard IDM solution designed specifically for the DoD Common Access Card program.
 
·
 
Launched the AIMS product line, a web-based smart card provisioning and management system based on industry standards. Recognized first customer revenue from AIMS during the quarter and initiated five pilots, of which four are enterprise and one is government.
 
·
 
Announced the availability of ActivPack™ 5.1, our AAA authentication server and remote access solution, which is the first to directly connect into LDAP enterprise directories.
 
·
 
Filed Form S-4 with the SEC for the purpose of re-incorporating our listed company from the Republic of France to the United States.
 
Mr. Humphreys added, “We were successful delivering our IDM solutions to new government and enterprise customers worldwide and several of our existing customers within the DoD expanded deployments in the third quarter. We also brought three new products and solutions to market targeted at the enterprise segment and sharpened our focus on digital ID cards, remote access and local access in our solution offering. We believe we are well positioned to continue to increase market share, increase revenue and drive to profitability.”

4

 
Fourth Quarter and 2002 Outlook
 
In the fourth quarter, we expect revenues to range between $12.0 million and $13.0 million. Pro forma net loss per share is expected to range between $0.00 and $0.03. Actual GAAP net loss for the fourth quarter is expected to range between $0.07 and $0.11 per share, which will reflect incremental costs related to our re-incorporation of the Company in the United States. We reiterate our earlier guidance of 30-35% year-over-year revenue growth and cash flow break-even from continuing operations in the fourth quarter of 2002.
 
ActivCard will hold a conference call at 11 a.m. EDT on November 4, 2002, featuring Mr. Humphreys and Chief Financial Officer Blair Geddes, to discuss these third quarter results. A live Webcast of this conference call will be available on the Investor page of our Website at www.activcard.com for 20 days. Webcast participants should register approximately 15 minutes before the event to download and install any necessary software. A replay of the Webcast will be available on the Website’s investor page for 20 days after the call.
 
About ActivCard, Inc.
 
ActivCard, www.activcard.com, is the leader in IDentity Management (IDM) software for remote access, local access and digital identity card solutions. Our scalable IDM and strong authentication solutions are trusted by organizations – from enterprise to governments around the world. ActivCard IDM systems deliver maximum Return On Identity™ (ROI) through increased security, reduced cost, and user convenience. The modular product design allows our customers to add capabilities as required, preserving their investment.
 
The statements in this press release that are not historical facts are forward-looking statements that involve risks and uncertainties, including risks associated with fluctuations in operating results, our history of losses, the concentration of our customer base, our reliance on strategic relationships, acquisitions and managing the Company’s future growth, and other risks identified in the Company’s periodic filings with the United States Securities and Exchange Commission, including but not limited to those appearing under the caption “Risk Factors” in the Company’s annual report on Form 20-F. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. ActivCard disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
 
Contacts
 
INVESTORS:
Teresa Thuruthiyil, Ty
George
FD Morgen-Walke
415-296-7383
  
COMPANY:
Megan O’Reilly-Lewis
ActivCard, Inc.
510-574-1789
mlewis@activcard.com
  
EUROPE:
Christina Zinck
ActivCard Europe
Suresnes, France
+33 (1) 42 04 84 00
christina.zinck@activcard.fr

5

 
ActivCard, S.A.
Unaudited Condensed Consolidated Statements of Operations (U.S. GAAP)
(In thousands of US dollars, except per share data)
 
    
For the three months ended September 30,
     
For the nine months ended September 30,
  
    
2002
     
2001
     
2002
     
2001
  
Revenues
   
$
11,983
 
   
$
8,803
 
   
$
29,755
 
   
$
24,417
 
Cost of revenues
   
 
3,850
 
   
 
2,188
 
   
 
9,364
 
   
 
7,486
 
    
  
  
  
Gross margin
   
 
8,133
 
   
 
6,615
 
   
 
20,391
 
   
 
16,931
 
    
  
  
  
Operating expenses
                                    
Selling and marketing
   
 
4,761
 
   
 
5,757
 
   
 
15,131
 
   
 
17,834
 
General and administrative
   
 
1,179
 
   
 
1,103
 
   
 
3,135
 
   
 
3,136
 
Research and development
   
 
4,777
 
   
 
4,894
 
   
 
14,683
 
   
 
12,738
 
Other charges
   
 
1,476
 
   
 
78
 
   
 
10,955
 
   
 
5,042
 
    
  
  
  
    
 
12,193
 
   
 
11,832
 
   
 
43,904
 
   
 
38,750
 
    
  
  
  
Loss from operations
   
 
(4,060
)
   
 
(5,217
)
   
 
(23,513
)
   
 
(21,819
)
Interest and other income
   
 
1,434
 
   
 
2,633
 
   
 
4,045
 
   
 
11,590
 
Foreign exchange (loss) gain
   
 
(107
)
   
 
(1,166
)
   
 
(186
)
   
 
3,442
 
    
  
  
  
Loss from continuing operations before income taxes
   
 
(2,733
)
   
 
(3,750
)
   
 
(19,654
)
   
 
(6,787
)
Income taxes
   
 
—  
 
   
 
—  
 
   
 
(69
)
   
 
(1
)
    
  
  
  
Loss from continuing operations
   
 
(2,733
)
   
 
(3,750
)
   
 
(19,723
)
   
 
(6,788
)
Loss from discontinued operations
   
 
(214
)
   
 
(74
)
   
 
(16,541
)
   
 
(74
)
    
  
  
  
Net loss
   
$
(2,947
)
   
$
(3,824
)
   
$
(36,264
)
   
$
(6,862
)
    
  
  
  
Net loss per common share:
                                    
Basic and diluted
   
$
(0.07
)
   
$
(0.10
)
   
$
(0.88
)
   
$
(0.17
)
Weighted average number of common shares:
                                    
Basic and diluted
   
 
41,439
 
   
 
40,165
 
   
 
41,080
 
   
 
39,997
 
Other charges consist of:
                                    
Amortization of intangibles related to acquisitions
   
$
498
 
   
$
197
 
   
$
1,589
 
   
$
197
 
Amortization of deferred compensation related to acquisitions
   
 
115
 
   
 
166
 
   
 
322
 
   
 
166
 
Acquired in process research and development
   
 
—  
 
   
 
300
 
   
 
68
 
   
 
401
 
Acquisition termination charges
   
 
—  
 
   
 
(480
)
   
 
—  
 
   
 
3,301
 
Amortization of deferred compensation related to options and warrants granted
   
 
237
 
   
 
—  
 
   
 
731
 
   
 
—  
 
Restructuring and business realignment expenses
   
 
133
 
   
 
—  
 
   
 
7,752
 
   
 
—  
 
Re-incorporation expenses
   
 
493
 
   
 
—  
 
   
 
493
 
   
 
—  
 
Compensation paid to departing C.E.O.
   
 
—  
 
   
 
(105
)
   
 
—  
 
   
 
776
 
Settlement of litigation
   
 
—  
 
   
 
—  
 
   
 
—  
 
   
 
201
 
    
  
  
  
Total other charges
   
$
1,476
 
   
$
78
 
   
$
10,955
 
   
$
5,042
 
    
  
  
  

ActivCard, S.A.
Unaudited Condensed Consolidated Balance Sheets (U.S. GAAP)
(In thousands of US dollars)
 
    
September 30, 2002
     
December 31, 2001
  
ASSETS
                  
Current assets
                  
Cash and equivalents
   
$
148,948
 
   
$
248,444
 
Short term investments
   
 
94,813
 
   
 
—  
 
Accounts receivable
   
 
9,213
 
   
 
8,314
 
Inventory
   
 
3,813
 
   
 
3,917
 
Loan to officer
   
 
2,789
 
   
 
2,718
 
Other receivables
   
 
1,472
 
   
 
2,647
 
Assets held for sale
   
 
339
 
   
 
15,870
 
Other current assets
   
 
2,267
 
   
 
1,975
 
    
  
Total current assets
   
 
263,654
 
   
 
283,885
 
Restricted investments
   
 
282
 
   
 
241
 
Property and equipment
   
 
7,553
 
   
 
8,868
 
Goodwill
   
 
10,600
 
   
 
8,704
 
Other intangibles
   
 
7,895
 
   
 
8,693
 
Other assets
   
 
1,415
 
   
 
1,057
 
    
  
Total assets
   
$
291,399
 
   
$
311,448
 
    
  
LIABILITIES AND SHAREHOLDERS’ EQUITY
                  
Current liabilities
                  
Accounts payable and accrued liabilities
   
$
9,825
 
   
$
10,103
 
Restructuring and business realignment accruals
   
 
4,753
 
   
 
—  
 
Deferred revenue
   
 
3,190
 
   
 
2,231
 
Liabilities held for sale
   
 
338
 
   
 
827
 
Current portion of long term liabilities
   
 
52
 
   
 
102
 
    
  
Total current liabilities
   
 
18,158
 
   
 
13,263
 
    
  
Long-term liabilities
   
 
465
 
   
 
625
 
    
  
Shareholders’ equity
                  
Common shares and paid-in capital
   
 
398,799
 
   
 
393,914
 
Accumulated deficit
   
 
(106,540
)
   
 
(70,276
)
Accumulated other comprehensive loss
   
 
(16,070
)
   
 
(20,637
)
Deferred stock compensation
   
 
(3,413
)
   
 
(5,441
)
    
  
Total shareholders’ equity
   
 
272,776
 
   
 
297,560
 
    
  
Total liabilities and shareholders’ equity
   
$
291,399
 
   
$
311,448
 
    
  

7

ActivCard, S.A.
Unaudited Condensed Consolidated Statements of Cash Flows (U.S. GAAP)
(In thousands of US dollars)
 
    
For the three months ended September 30, 2002
     
For the nine months ended September 30, 2002
  
Operating activities
                  
                   
Net loss from continuing operations
   
$
(2,733
)
   
$
(19,723
)
                   
Adjustments to reconcile net loss from continuing operations to net cash used in continuing operations:
                  
Depreciation and amortization
   
 
867
 
   
 
2,605
 
Amortization of intangible assets
   
 
498
 
   
 
1,635
 
In process research and development
   
 
—  
 
   
 
68
 
Amortization of deferred compensation
   
 
352
 
   
 
1,053
 
Restructuring and business realignment costs
   
 
—  
 
   
 
1,054
 
Other non-cash items, net
   
 
128
 
   
 
232
 
Increase (decrease) in cash, net of effects of business combinations, from:
                  
Accounts receivable
   
 
(3,133
)
   
 
(685
)
Inventory
   
 
446
 
   
 
461
 
Other receivables
   
 
(405
)
   
 
(395
)
Other current assets
   
 
321
 
   
 
(447
)
Accounts payable and accrued liabilities
   
 
2,362
 
   
 
(1,399
)
Restructuring and business realignment accruals
   
 
(332
)
   
 
4,637
 
Deferred revenue
   
 
1,332
 
   
 
1,019
 
    
  
Net cash used in continuing operations
   
 
(297
)
   
 
(9,885
)
Net cash used in discontinued operations
   
 
(498
)
   
 
(1,291
)
    
  
Net cash used in operating activities
   
 
(795
)
   
 
(11,176
)
    
  
Investing activities
                  
Business acquisitions, net of cash received
   
 
—  
 
   
 
606
 
Purchases of property and equipment
   
 
(214
)
   
 
(1,162
)
Loan to officer
   
 
(23
)
   
 
(67
)
Purchases of short term investments
   
 
(52,108
)
   
 
(173,159
)
Proceeds from sales and maturities of short term investments
   
 
51,505
 
   
 
78,405
 
Investments in other long term assets
   
 
102
 
   
 
13
 
    
  
Net cash used in investing activities
   
 
(738
)
   
 
(95,364
)
    
  
Financing activities
                  
Proceeds from exercise of options, rights and warrants
   
 
477
 
   
 
5,172
 
Increase in long term liabilities
   
 
43
 
   
 
43
 
Repayment of long term liabilities
   
 
—  
 
   
 
(160
)
    
  
Net cash provided by financing activities
   
 
520
 
   
 
5,055
 
    
  
Effect of exchange rate changes on cash and equivalents
   
 
(233
)
   
 
1,989
 
    
  
Net decrease in cash and equivalents
   
 
(1,246
)
   
 
(99,496
)
Cash and equivalents, beginning of period
   
 
150,194
 
   
 
248,444
 
    
  
Cash and equivalents, end of period
   
$
148,948
 
   
$
148,948
 
    
  

8

ActivCard, S.A.
Unaudited Pro Forma Condensed Consolidated Statements of Operations
(In thousands of US dollars, except per share data)
 
ActivCard is providing the following pro forma information as a supplement to financial information presented in accordance with accounting principles generally accepted in the United States or U.S. GAAP. The pro forma information set forth below is not in accordance with nor is it an alternative to U.S. GAAP. The pro forma information reflects additional information that Management uses to evaluate our financial performance.
 
    
For the three
months ended
September 30,
     
For the nine
months ended
September 30,
  
    
2002
     
2001
     
2002
     
2001
  
Revenues
   
$
11,983
 
   
$
8,803
 
   
$
29,755
 
   
$
24,417
 
Cost of revenues
   
 
3,850
 
   
 
2,188
 
   
 
9,364
 
   
 
7,486
 
    
  
  
  
Gross margin
   
 
8,133
 
   
 
6,615
 
   
 
20,391
 
   
 
16,931
 
    
  
  
  
Operating expenses
                                    
Selling and marketing
   
 
4,761
 
   
 
5,757
 
   
 
15,131
 
   
 
17,834
 
General and administrative
   
 
1,179
 
   
 
1,103
 
   
 
3,135
 
   
 
3,136
 
Research and development
   
 
4,777
 
   
 
4,894
 
   
 
14,683
 
   
 
12,738
 
    
  
  
  
    
 
10,717
 
   
 
11,754
 
   
 
32,949
 
   
 
33,708
 
    
  
  
  
Pro forma loss from operations
   
 
(2,584
)
   
 
(5,139
)
   
 
(12,558
)
   
 
(16,777
)
Interest and other income
   
 
1,434
 
   
 
2,633
 
   
 
4,045
 
   
 
11,590
 
Income taxes
   
 
—  
 
   
 
—  
 
   
 
(69
)
   
 
(1
)
    
  
  
  
Pro forma net loss
   
$
(1,150
)
   
$
(2,506
)
   
$
(8,582
)
   
$
(5,188
)
    
  
  
  
Pro forma net loss per common share:
                                    
Basic and diluted
   
$
(0.03
)
   
$
(0.06
)
   
$
(0.21
)
   
$
(0.13
)
Weighted average number of common shares:
                                    
Basic and diluted
   
 
41,439
 
   
 
40,165
 
   
 
41,080
 
   
 
39,997
 
Reconciliation of pro forma net loss to U.S. GAAP net loss:
                                    
Pro forma net loss
   
$
(1,150
)
   
$
(2,506
)
   
$
(8,582
)
   
$
(5,188
)
    
  
  
  
Add back items excluded from the derivation of pro forma net loss:
                                    
Operating expenses
                                    
Acquisition-related charges
   
 
613
 
   
 
183
 
   
 
1,979
 
   
 
4,065
 
Amortization of deferred compensation related to options and warrants granted
   
 
237
 
   
 
—  
 
   
 
731
 
   
 
—  
 
Restructuring and business realignment expenses
   
 
133
 
   
 
—  
 
   
 
7,752
 
   
 
—  
 
Re-incorporation expenses
   
 
493
 
   
 
—  
 
   
 
493
 
         
Compensation paid to departing C.E.O.
   
 
—  
 
   
 
(105
)
   
 
—  
 
   
 
776
 
Settlement of litigation
   
 
—  
 
   
 
—  
 
   
 
—  
 
   
 
201
 
    
  
  
  
Total excluded from operating expenses
   
 
1,476
 
   
 
78
 
   
 
10,955
 
   
 
5,042
 
Foreign exchange loss (gain)
   
 
107
 
   
 
1,166
 
   
 
186
 
   
 
(3,442
)
Loss from discontinued operations
   
 
214
 
   
 
74
 
   
 
16,541
 
   
 
74
 
    
  
  
  
Total pro forma adjustments
   
 
1,797
 
   
 
1,318
 
   
 
27,682
 
   
 
1,674
 
    
  
  
  
U.S. GAAP net loss
   
$
(2,947
)
   
$
(3,824
)
   
$
(36,264
)
   
$
(6,862
)
    
  
  
  

9
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